A lawsuit was filed on behalf of investors in Vipshop Holdings Ltd – ADR (NYSE:VIPS) shares over alleged securities laws violations and NYSE:VIPS investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 06/03/2015 -- An investor, who purchased shares of Vipshop Holdings Ltd – ADR (NYSE:VIPS), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Vipshop Holdings Ltd in connection with certain allegedly false and misleading statements made between February 17, 2015 and May 11, 2015.
Investors who purchased a significant amount of shares of Vipshop Holdings Ltd – ADR (NYSE:VIPS) have certain options and for certain investors are short and strict deadlines running. Deadline: July 20, 2015. NYSE:VIPS investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Vipshop Holdings Ltd – ADR (NYSE:VIPS) common shares between February 17, 2015 and May 11, 2015, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that defendants made allegedly false and/or misleading statements and/or allegedly failed to disclose that Vipshop Holdings Ltd manipulated and overstated sales, receivables, profit, cash flows, and asset accounts including inventory and investments, that Vipshop Holdings Ltd's financial statements contain GAAP violations by reporting revenue on a 'gross' basis, despite the fact that the vast majority of the company's sales are under a consignment arrangement, that Vipshop Holdings Ltd's internal controls over financial reporting were ineffective, and that as a result of the foregoing, Vipshop's public statements were materially false and misleading at all relevant times.
Vipshop Holdings Ltd reported that its annual Total Revenue rose from $227.14 million in 2011 to over $3.77 billion in 2014 and that its Net Loss of $107.27 million in 2011 turned into a Net Income of $137.26 million.
Shares of Vipshop Holdings Ltd – ADR (NYSE:VIPS) grew to as high as $30.72 per share on April 27, 2015.
Then on May 12, 2015, a report was published alleging that forensic models suggest Vipshop Holdings Ltd manipulated sales, receivables, profit and other asset accounts; and that Vipshop Holdings' financial statements have been contradicted by management's own disclosures in several instances.
On May 13, 2015, Vipshop Holdings Ltd responded to the allegations and said that the allegations are unfounded and contain numerous errors, unsupported speculation, and a general misunderstanding of the Company's business model. On May 15, 2015, Vipshop Holdings Ltd responded to allegations made by a short seller on May 13, 2015. Shares of Vipshop Holdings Ltd – ADR (NYSE:VIPS) declined on May 21, 2015, at as low as $22.70 per share.
On June 1 2015, NYSE:VIPS shares closed at $24.30 per share.
Those who purchased shares of Vipshop Holdings Ltd – ADR (NYSE:VIPS) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego